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FARO Technologies (FARO) investor relations material
FARO Technologies Q1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q1 2025 revenue reached $82.9 million, at the upper end of guidance, with non-GAAP EPS of $0.33, the highest Q1 in company history, and net income of $0.9 million, reversing a net loss of $7.3 million in Q1 2024.
Non-GAAP gross margin was 57.7%, above guidance, and non-GAAP operating expenses were $38.5 million, at the low end of guidance.
Adjusted EBITDA grew 124% year-over-year to $12.5 million (15% margin), and net orders increased 6% year-over-year, driven by new products and partnerships.
Operating cash flow was positive for the sixth straight quarter, with cash, equivalents, and short-term investments totaling $102.6 million at quarter-end.
Strategic focus on operational excellence, organic growth, and selective investments is driving performance.
Financial highlights
Total sales declined 1.6% year-over-year to $82.9 million; Americas, EMEA, and APAC contributed $36.0M, $25.1M, and $21.7M, respectively.
Non-GAAP gross margin expanded 590 basis points year-over-year to 57.7%; GAAP gross margin was 57.0%.
Non-GAAP net income was $6.4 million ($0.33/share) vs. $1.7 million ($0.09/share) in Q1 2024.
Adjusted EBITDA was $12.5 million (15% of sales), up from $5.6 million in Q1 2024.
Cash and short-term investments rose to $102.6 million, up $3.9 million sequentially.
Outlook and guidance
Q2 2025 revenue expected between $79 million and $87 million, with nominal year-over-year growth at the midpoint.
Non-GAAP gross margin guidance: 57%-58.5%; non-GAAP operating expenses: $38.5-$40.5 million.
Non-GAAP EPS expected between $0.20 and $0.40 for Q2.
Hardware market assumed to be down 10% year-over-year in Q2, but growth initiatives and backlog expected to offset decline.
Positive adjusted free cash flow expected for 2025.
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